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Originally Posted by rickair7777
It is a scary-looking graph at a glance, but actual context would help... like shares outstanding vs. authorized shares. If those numbers are close to each other that might be scary. Also what's the authorized %?
I can make a graph with factual numbers showing that air travel for last month, year over year, has grown by about 800%... industry must be doing great right? Fun with stats.
Except this is a four year look back rather than a 1 month look back, as are the charts showing net income. That’s a little harder to write off as a blip comparing a pandemic month to a non pandemic (or at least substantially recovered) month. As I’m sure you are aware, Rick.
Do you truly believe that an $8.45 Billion loss is trivial and will have no effect on operations on a company that had less profit than that in the preceding 4 non-pandemic years combined? Truthfully?
And yeah, they are nowhere near their authorized shares - they can sell more - up to twice more their current number
Quote:
AUTHORIZED CAPITAL STOCK
SECTION 1. Authorized Capital Stock.
(a) The total number of shares of all classes of stock which the Corporation shall have authority to issue is 1,950,000,000 shares of capital stock, consisting of 1,750,000,000 shares of common stock having a par value of $0.01 per share (the “Common Stock”) and 200,000,000 shares of preferred stock having a par value of $0.01 per share (the “Preferred Stock”).
but how many companies do you know that are anywhere close to their authorized limit - which they set themselves at incorporation? And how do you figure selling more stock doesn’t lead to more stock dilution, which was the issue to begin with?